Financial News
FTC makes Celgene's Otezla divestiture official condition for Bristol-Myers acquisitionExternal Link

Celgene Corp. is required to divest its most popular psoriasis treatment in order to be acquired by Bristol-Myers Squibb Co. , the Federal Trade Commission announced Friday. For Bristol-Myers to close on its $74 billion acquisition, Celgene will have to sell its drug Otezla for $13.4 billion to Amgen Inc. , the FTC said. "The Commission has ordered BMS to divest Otezla to preserve BMS's incentive to continue developing its own oral product for treating moderate-to-severe psoriasis," said FTC Chairman Joseph Simons in a statement. "The antitrust laws protect not only competition today, but competition in the future, especially when it comes to the development of new treatments for chronic conditions." The companies already anticipated the FTC's concerns and agreed to the deal back in August.

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Fri, 15 Nov 2019 22:43:39 GMT
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Health stocks post best day in 10 months as Trump announces transparency rulesExternal Link

A popular exchange-traded fund that tracks the health-care sector saw its best daily return in 10 months on Friday after the Trump administration proposed new rules aimed at making health-care prices more transparent. The SPDR Health Care Select Sector ETF posted a 2.1%, marking its best day since Jan. 4, when it rose 2.98%, according to FactSet data. The Trump administration proposed a rule that would require health insurers to disclose estimated out-of-pocket costs, including negotiated rates, to patients in advance of a procedure or office visit. It also finalized a rule requiring hospitals to make transparent the prices they charge patients starting in 2021. It's possible that the stocks gained on doubts on how the rules would be enforced. "While the Trump administration's new hospital price transparency requirement is quite sweeping, the enforcement of it is quite weak - a maximum fine of $300 per day," Kaiser Family Foundation executive Larry Levitt wrote on Twitter. Shares of UnitedHealth Group Inc. , which is the largest health insurer in the U.S., and Anthem Inc. each rose roughly 5%. Shares of Tenet Healthcare Corp. and HCA Healthcare Inc. , both large hospital operators, were up at least 2%. The S&P 500 is up 24.4% year-to-date.

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Fri, 15 Nov 2019 22:36:24 GMT
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U.S. marijuana retailer MedMen to slash staff, sell off assetsExternal Link

MedMen Enterprises Inc. , a U.S. marijuana retail chain, announced Friday afternoon that it is cutting more than 20% of its staff and looking to sell some of its assets amid a cash crunch. MedMen said it would lay off 190 workers, scale back marketing and outsource functions such as human relations in an effort to reduce spending on selling, general and administrative efforts to an annualized rate of $85 million. In the fiscal year that ended June 29, MedMen reported general and administrative costs of $244 million and sales and marketing expenses of $27.5 million. MedMen also announced that it has agreed to sell its stake in a pot-focused real estate investment trust for $14 million, exit various venture investments for a net return of $8 million, and will look to sell "certain operations and licenses in states that are currently deemed not critical to the company's retail footprint." MedMen also will slow down on certain planned initiatives, including indefinitely postponing some retail buildouts and expansions, renegotiating a previous acquisition to turn a $15 million cash payout into $10 million in stock, and slowing down M&A activity. MedMen said at the end of its last fiscal year that it had less than $34 million in cash and equivalents, after burning through $45.4 million in a year that included several financing activities. MedMen's over-the-counter shares have lost more than 65% of their value in 2019.

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Fri, 15 Nov 2019 22:13:32 GMT
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Cloud-based financial software provider Bill.com files for IPOExternal Link

Bill.com Holding Inc. , a cloud-based financial operations software provider in Palo Alto, Calif., has filed for an initial public offering, according to a filing late Friday. The company, which serves mostly small to medium-sized businesses, said it plans to raise up to $100 million, but that figure is often used as a placeholder and updated in future filings. The company plans to list under the ticker "BILL" on the New York Stock Exchange. Goldman Sachs, Bank of America Securities, and Jefferies are among the underwriters for the offering. The company reported a loss of $7.3 million on revenue of $108.4 million in the year ended June 30, 2019, compared with a loss of $7.2 million on revenue of $64.9 million in the previous fiscal year.

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Fri, 15 Nov 2019 21:36:31 GMT
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Major stock indexes close at new highs on fresh trade optimism and retail sales beatExternal Link

U.S. stocks swept to fresh records as investors turned more bullish on a trade deal with China and focused on rosy consumer data. The Dow Jones Industrial Average closed about 222 points, 0.8%, higher, just above 28,000. The S&P 500 jumped 24 points, 0.8%, to close at about 3,120. The Nasdaq was about 62 points, 0.7%, higher at the close, at 8,541. Shares of J.C. Penney Co. Inc. jumped after beating earnings expectations for the recent quarter.

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Fri, 15 Nov 2019 21:03:02 GMT
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